This study attempts to integrate ethical values into the fraud triangle theory in the context of Malaysian banking industry. Primary data were collected through the survey of 108 questionnaires administered to the employees of the top three largest banks in Malaysia. The findings revealed that ethical values were negatively related to employee fraud, and two elements of fraud triangle theory, namely, opportunity and rationalization, were positively related to employee fraud. This implies that high ethical value is crucial to mitigate employee fraud. To minimize employee fraud, the banking industry should reduce opportunities and employee negative rationalization through strong internal control. This study contributes to literature on the occurrences of employee fraud, which is not widely discussed, especially in the context of the banking industry in developing countries. (original abstract)

Murdock, H. (2008). The three dimensions of fraud: Auditors should understand the needs, opportunities, and justifications that lead individuals to commit fraudulent acts. Internal Auditor, 65(4), 81-83.

Slezak, K. (2013). Fraud Prevention and Employee Rationalization in New York State Public Schools. Department of Educational Administration And Policy Studies University at Albany, New York. Phd Thesis. Retrieved from http://pqdtopen.proquest.com/doc/1504639871.html?FMT=AI